Third assignment Public Finance Supervision: Dr. Almostassem Mostafa Answer the following questions: 1. Define: a) Negative externalities. b) Positive externalities. c) Positional externalities. d) Network externality 2. Compare between production externality and consumption externality, 3- Government intervention is always needed to deal with external costs and benefits. State whether this statement is true of false and justify your answer. 4. Mention: a) Two examples of positive externalities. b) Two examples of negative externalities. Complete the following sentences: refer to a special type of externality that depends on the relative rankings of actors in a situation ...is an action of a product on consumers that imposes a negative effect on a third party; it is external cost. ....is a tax imposed that is equal in value to the negative externality 4- If all parties involved can easily organize payments so as to pay each other for their actions, then an efficient outcome can be reached without government intervention, this is known as... 5- There are general types of solutions to the problem of externalities which are. 6- A.. would increase the utility of third parties at no cost to them. -represents a connection between economic agents which lies outside the price system of the economy. 7. Third assignment Public Finance Supervision: Dr. Almostassem Mostafa Answer the following questions: 1. Define: a) Negative externalities. b) Positive externalities. c) Positional externalities. d) Network externality 2. Compare between production externality and consumption externality, 3- Government intervention is always needed to deal with external costs and benefits. State whether this statement is true of false and justify your answer. 4. Mention: a) Two examples of positive externalities. b) Two examples of negative externalities. Complete the following sentences: refer to a special type of externality that depends on the relative rankings of actors in a situation ...is an action of a product on consumers that imposes a negative effect on a third party; it is external cost. ....is a tax imposed that is equal in value to the negative externality 4- If all parties involved can easily organize payments so as to pay each other for their actions, then an efficient outcome can be reached without government intervention, this is known as... 5- There are general types of solutions to the problem of externalities which are. 6- A.. would increase the utility of third parties at no cost to them. -represents a connection between economic agents which lies outside the price system of the economy. 7